Direct Tax Laws and International Taxation · Return of Income

Verification, Signing and Mode of Filing of Return of Income

Updated 11 October 2026 · Fact-checked

A return of income must be signed and verified by the person the Act names for that type of assessee, such as the managing director for a company or the managing partner for a firm. It is filed electronically where the rules require it. Eligible small assessees may use a notified tax return preparer scheme. Identify the assessee, then the signatory, then the mode.

Understand Verification, Signing and Mode of Filing

A return of income is a statement the assessee makes to the tax department. It carries a declaration that the facts are correct and complete. The declaration is only meaningful if the right person makes it. So the law fixes who can sign and verify the return for each kind of assessee.

The logic is simple. An individual can sign for himself. A company, firm or association is not a human being, so a human with authority must act for it. The Act names that person by status: for example a managing director or director for a company, a managing or adult partner for a firm, a designated partner for an LLP, and the karta for a HUF. If the first-choice person is absent, incapacitated or does not exist, the Act lets a fallback person sign. Learn each assessee as a pair: first choice and fallback.

The second idea is mode of filing. The return is furnished on paper or electronically. The Board can make rules by notification on which classes of persons must furnish the return in electronic form, and on the form and manner of doing so. Section 533(2)(j) lists this rule-making power. Companies and assessees whose accounts are audited are the usual compulsory e-filers. Always confirm the current rules for the tax year.

The third idea is the tax return preparer. Under section 264 the Board may notify a Scheme so that specified assessees can file through an authorised preparer. The scheme can operate irrespective of section 263. It is meant for smaller, simpler cases. It excludes companies and persons whose accounts must be audited.

Do not mix this with an authorised representative under section 515. That section lets an assessee attend before tax authorities or the Tribunal through a representative, such as a relative, a legal practitioner or an accountant. It is about appearing in proceedings. Who signs the return is a separate question.

Key rules to remember

Individual: Return signed by the individual himself; Fallbacks apply if he is absent from India, mentally incapacitated, or another reason is permitted. Then an authorised person with a valid power of attorney signs.
HUF: Karta; if absent or incapacitated, any other adult member; Remember the fallback is an adult member of the family.
Company: Managing director; else a director; A director signs where there is no managing director or he cannot sign for an unavoidable reason. Special persons apply for non-resident companies, companies in liquidation and companies under Government management.
Firm and LLP: Managing partner (designated partner for LLP); else any adult partner; For a firm, a minor partner cannot sign. Check the exact fallback in the Act text.
AOP and other persons: Principal officer or a member; for any other person, that person or a member or principal officer; A political party uses its chief executive officer.
Tax return preparer scheme (section 264): Scheme notified by Board; irrespective of section 263; Covers persons other than a company or a person whose accounts are required to be audited under section 63 or any other law.
Who is a tax return preparer (section 264(2)(a)): Individual, not a section 515(3)(a)(ii) person, not an employee of the specified class, authorised under the Scheme; Section 515(3)(a)(ii) is an officer of a scheduled bank with which the assessee deals.
Electronic filing rules (section 533(2)(j)): Board rules fix classes who must e-file, form, manner and documents not attached; The rule-making power is here. The actual compulsory classes come from the rules.

How to solve Verification, Signing and Mode of Filing questions

Use this order for any question on who signs, how to file or whether a preparer can be used.

1Identify the assessee type: individual, HUF, company, firm, LLP, AOP, political party or other.
2Check the special condition: non-resident, liquidation, Government management, absence from India or incapacity.
3Name the first-choice signatory for that type, then the fallback that fits the facts.
4Decide the mode: is the assessee a company or one whose accounts are audited? If so, expect electronic filing with a digital signature or other prescribed verification.
5If a return preparer is mentioned, test two things: is the assessee in the specified class (not a company, not audited), and is the preparer an eligible individual under section 264(2)(a)?
6If a representative is mentioned, ask whether it is for attending proceedings (section 515) or for signing the return. Keep them apart.
7Write the conclusion in one line and cite the section only where you are sure of it.

Quickest way: Type, fallback, mode

When to use it: Use for MCQs and short case questions where you have under two minutes.

Underline the assessee type and any unusual fact such as absence abroad, liquidation or no managing director.
Pick the first-choice signatory, then switch to the fallback only if the facts force it.
If the assessee is a company or audited, rule out the preparer scheme at once.
If the preparer is a bank officer or an employee of the assessee, reject the appointment.

Common mistakes in Verification, Signing and Mode of Filing

Letting any director sign a company return even when a managing director is available.
Students remember that directors act for a company and ignore the order of preference.
Fix: Write the order: managing director first, director only if there is no managing director or he cannot sign for an unavoidable reason.
Allowing a company to use the tax return preparer scheme.
The scheme sounds like general relief for filing.
Fix: Remember the specified class in section 264(2)(b) excludes a company and any person whose accounts are required to be audited.
Treating an authorised representative under section 515 as the person who signs the return.
Both involve someone acting for the assessee.
Fix: Section 515 deals with attending before authorities or the Tribunal. Signing follows the verification rules for the assessee type.
Saying a bank officer or an employee of the assessee can be a return preparer.
Students recall the list of authorised representatives and assume it applies here.
Fix: Section 264(2)(a) excludes a person under section 515(3)(a)(ii) and an employee of the specified class of persons.
Naming a fixed list of compulsory e-filers from memory without checking.
The categories are set by rules that change over time.
Fix: State that the Board's rules decide the classes (section 533(2)(j)), and give companies and audited assessees as the usual examples.

Worked examples

Example 1

Sunrise Textiles Pvt. Ltd. has a managing director, Mr. Iyer, who is hospitalised abroad with no means of signing. Another director, Ms. Nair, is in Mumbai. The company's return is due. Who can sign and verify, and in what mode is it filed?

Show the solution

Assessee type is a company. The first choice is the managing director.
Mr. Iyer cannot sign for an unavoidable reason, so the fallback applies.
The fallback for a company is a director. Ms. Nair is a director, so she can sign and verify.
A company is a usual compulsory electronic filer under the rules, so the return is furnished electronically and verified in the prescribed electronic manner.

Answer: Ms. Nair, as a director, can sign and verify because the managing director cannot sign for an unavoidable reason. The return is filed electronically.

Example 2

Mr. Rao, a salaried individual with small interest income and no audit requirement, wants to file through a tax return preparer under a notified scheme. He proposes his employee, Ms. Das, and also asks if Sundar & Co., a partnership firm with audited accounts, can use the same scheme. Advise.

Show the solution

Section 264 lets the Board notify a scheme for specified classes of persons to file through a tax return preparer.
The specified class is any person other than a company or a person whose accounts must be audited, who must furnish a return. Mr. Rao is in the class because he is neither a company nor audited.
A tax return preparer must be an individual, not an officer of a scheduled bank under section 515(3)(a)(ii) and not an employee of the specified class of persons. Ms. Das is an employee of Mr. Rao, so she is not eligible, but another authorised individual can act.
Sundar & Co. has audited accounts, so it is outside the specified class and cannot use the scheme.

Answer: Mr. Rao can use the scheme, but not through Ms. Das, since she is his employee. He must choose another individual authorised under the scheme. Sundar & Co. cannot use it because its accounts are audited.

Exam tips

In MCQs, read the assessee type first. The signatory follows from it, so most wrong options are easy to cut.
Learn the pairs: first choice and fallback for each assessee. Case questions usually change one fact, such as absence, to trigger the fallback.
For section 264 questions, check the two tests: the class of assessee and the eligibility of the preparer. Quote the exclusions.
Never write a section number you are unsure of. For signatories, state the rule in words and cite sections 264, 515 and 533 only where used above.

Practice questions from Return of Income

Verification, Signing and Mode of Filing in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalSigning of the Annual Return

Verification, Signing and Mode of Filing: frequently asked questions

Who can sign the return of income of a company?

The managing director signs. If there is no managing director, or he cannot sign for an unavoidable reason, any director can sign. Special persons sign for a non-resident company, a company in liquidation or one under Government management.

Who signs the return of a firm or an LLP?

The managing partner signs for a firm, and a designated partner for an LLP. If there is no managing partner or he is unavailable, any adult partner can sign for a firm. Check the exact fallback in the Act.

Is electronic filing compulsory for everyone?

No. The Board makes rules on which classes must furnish the return in electronic form, as section 533(2)(j) allows. Companies and persons whose accounts are audited are the usual compulsory e-filers, so check the current rules.

Who is a tax return preparer?

Under section 264(2)(a), it is an individual authorised under the notified Scheme. He cannot be a section 515(3)(a)(ii) person (a bank officer dealing with the assessee) or an employee of the specified class of persons. Companies and audited assessees cannot use the scheme.

Can an authorised representative sign my return?

Section 515 lets an authorised representative attend before income-tax authorities or the Tribunal for proceedings. It does not decide who signs the return. Signing follows the verification rules for your type of assessee.